Gender equality laws a burden on industry

Labor’s new Workplace Gender Equality Act is ill-considered, ill-conceived and is now embarrassing the federal government as it scrambles to provide industry with the information it requires to comply with the new law.

The Labor government is promoting this legislation to try to convince industry and women’s groups of its commitment to gender equality. However, it was rushed through the Parliament late last year without adequate industry consultation or debate.

The Act will require businesses with more than 100 employees to formally submit reports against a series of yet to be defined “gender equality indicators". However, the reporting requirements under the gender equality indicators were not determined at the time the legislation was introduced into the Parliament and the government is now desperately trying to put the reporting requirements in place.

Last month, the then-Acting Minister for the Status of Women, Jenny Macklin, called on “anyone with a special knowledge or interest in workplace gender equality to let them know their priorities" so the government could determine the substance of the reporting requirements under the gender equality indicators as part of the new Act.

In a vote of no confidence in its own staff at the Office for Women, the government has employed external consultants to determine the substance of the reporting requirements.

It is critical that the government make compliance with the gender equality indicators as simple and practicable as possible.

The government, in its explanatory memorandum, tabled with The Workplace Gender Equality Act, claimed that “the new reporting framework is aimed at reducing the regulatory burden on business". The need to reduce red tape must be kept front of mind when the mandatory reporting requirements are finally decided.

The need for clarity and simplicity in reporting was highlighted by the Australian Industry Group, which suggested limiting the reporting requirements to one for each indicator.

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In its submission on the issue, the Australian Mines and Metals Association questioned the need for separate gender equality indicators. It also calls the draft proposed reporting requirements set out in an Issues Paper as “skeletal", while AI Group categorises them as “problematic", saying that reporting requirements like “base pay by gender" would require unreasonable amounts of analysis to be performed by employers.

A strong weighting should be given to the consideration of employers in this consultation process, as they will ultimately be responsible for complying with whatever reporting requirements are imposed by the gender equality indicators; and it is employers who face the risk of being excluded from government grants and contracts if they don’t comply.

The Coalition has clearly indicated that it will continue to support business and provide an environment for businesses to conduct their operations in an efficient environment. The Coalition supports gender diversity and recognises the benefits that it brings to the boardroom and workroom tables across Australia.

You can’t legislate cultural change. The same principal applies in this situation – gender equality can’t be imposed top-down through burdensome or costly reporting requirements.

I believe in studying those companies, like ANZ and Westpac, who have successfully achieved their targets and goals for improving gender equality and the number of women in leadership positions, while encouraging other businesses to recognise the proven value that gender equality brings to businesses across Australia.

The Workplace Gender Equality Agency claims on its new website that it is “a light-touch regulator, the Agency works collaboratively with employers, offering advice and assistance to promote and improve gender equality in their workplaces."

Industry and the Coalition will watch with interest the results relating to gender equality indicators, when decided, to see if they adhere to this statement.

Senator Cash is Shadow Parliamentary Secretary for the Status of Women.